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Saturday, October 23, 2010

Abolish the minimum wage?

Currently, two candidates for the U.S. Senate are advocating the abolition of the federally mandated minimum wage. Why? They argue that there is no need for the government to set a minimum wage for the unskilled workers of the country. They are both advancing flawed laogic to prove their resepective theories.

The Fair Labor Standards Act of 1938 was passed by President Frankiln Delano Roosevelt because there was a need to get more workers into the work force. One of the most important components of The Act, was to ensure that non-exempt workers were paid time and a half for all hours worked over 40 in a given week. Thus, an employer would be less likely to have one person do 90 hours of work in a week, and subsequently hire an additional employee to get the job done. This produced two important benefits:

First, it put more people to work, which in turn reduces the amount of people seeking government assistance.

Second, and more important, it provides more people with disposable income to spend on products and services from small businesses, which in turn allow those businesses to expand and employ more workers with more disposable income. In short, it enhances consumer spending opportunities and the quality of life for many.

So my question then is what do Miler and Raese have against the working class? Are they truly of the notion that the minimum wage is an evil thing? Or are they just dead set against anyone earning money?

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